Investors bet on large market swings to profit this week
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Investors in India are betting on large market swings to profit this week due to uncertainty over the Iran war and conflicting statements from US President Donald Trump. The market has seen a 58% rise in open positions on the 23100 call and a 79% rise in the 23100 put, indicating a potential steep move in the Nifty index by Tuesday.
Investors in India are using a strategy called long straddle to profit from sharp market movements. They are buying both Nifty calls and puts at the same level, targeting a major move by Tuesday. The Nifty index has plunged over 8% in three weeks due to oil supply fears. Despite this, some market veterans are optimistic about a rally. Foreign institutional investors are net short index calls, while retail traders are net long index calls.
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